Should You Be LOCKING Your Loans?

Should you lock in the interest rate on your mortgage? A couple of things to consider:

1. While I am confident that the Debt Ceiling Debate will be settled (whether it’s for six months or a year),my greater concern is the growing belief that the ratings agencies are looking at downgrading our government’s bonds from our AAA status. By lowering the credit rating of the bonds being presented to the market,the confidence of those who buy our bonds will be shaken. In order to overcome the risk of lower rated bonds,we will need to offer greater rates of returns on our bonds. THAT will result in a rise in mortgage rates because mortgages are what make up the bonds. This will affect virtually every conforming loan limit home buyer,whether they have conventional or government (FHA/VA) financing.